Buffett's Compensation Declines 14%

OMAHA, Neb. (AP) -- Warren Buffett's total compensation declined 14 percent last year to $423,923 as Berkshire Hathaway (NYSE: BRK-A  ) (NYSE: BRK-B  ) spent less on his security, but his salary remained unchanged at $100,000.

Buffett's salary for leading Berkshire as chairman and chief executive hasn't changed in more than 25 years. The $323,923 for security was the only other element of Buffett's 2012 compensation because the billionaire forgoes typical executive perks.

Buffett again paid Berkshire $50,000 to reimburse the Omaha-based company for any personal costs.

The proxy statement Berkshire mailed to shareholders this week also showed that Chief Financial Officer Marc Hamburg is paid significantly more than Buffett.

Hamburg's compensation grew 6 percent to just over $1 million from 2011's $974,750.

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  • Report this Comment On March 15, 2013, at 12:50 PM, Wildflyer wrote:

    I,like many Berkshire shareholders, are increasingly concerned that rising salaries of its "new" managers(not to mention recent egregious behavior related to the Lubrizol mess) reflect a fundamental shift away from "heavy insider" owners driving decisions to that of "non-owner" or "minimal insider owner" managers doing so.

    Clearly, duty to shareholders may drift as future conflicts of interests arise.If so,I'd expect selloffs to occur in this giant holding company.

    Little reassurance comes from the knowledge that Buffett's children will participate in governance and oversight, or his heretofore "hands off" approach toward subsidiaries will continue.

    Just how much "skin in the game" should new managers have? I vote "alot".The alternative will be a much different business model for this icon.

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